OpenAI, the artificial intelligence studio led by Sam Altman might witness a potential financial crisis, according to Analytics India Magazine. The report said that the company might go bankrupt by the end of 2024.OpenAI might go bankrupt: ReportsThe report said that it costs Open AI about $700,000 (approximately ₹5,80 crore) every day to run just one of its AI services – ChatGPT. Altmans OpenAI is burning through cash at the moment. Despite the attempt to monetise GPT-3.5 and GPT-4, the company is not able to generate enough revenue to break even at this point. Since November 2022, ChatGPT has become the fastest-growing app in history. However, now the tech firm is witnessing a gradual decline in user engagement in the past these months after a record-breaking response from the users during their early stage.12% downfallIn July 2023, the base user has been reduced to 12 per cent compared to June, plummeting from 1.7 billion users to 1.5 billion users, SimilarWeb data said.The companys APIs are also one of the problems. As per the reports, earlier, the companies discouraged their employees from using ChatGPT, but now have begun acquiring access to OpenAIs APIs, enabling them to create their own AI chatbots for diverse workflows.Taking notes from the situation, the Analytics India Magazines report emphasizes the problem. It said that several open-source LLM models are free to use and are allowed to be repurposed, without any licensing issues. As a result, they can properly customise and adapted to specific use case scenarios that an organisation might have.Citing an example, the report said that Metas Llama 2, in partnership with Microsoft, is allowing people to use the model for commercial purposes. So, instead of going for what OpenAI offers, which is a paid, proprietary, and restricted version, why would people not go for an easily modifiable Llama 2 Arguably, it is also a lot better in certain use cases when compared to GPT. That is already happening.OpenAI in crisisFurther, it said that OpenAI is not profitable yet. In May, its losses doubled to $540 million ever since it started developing ChatGPT. Microsofts $10 billion investment in OpenAI is possibly keeping the company afloat at the moment. Apart from this, OpenAI projected an annual revenue of $200 million in 2023, and is expected to soar up to $1 billion in 2024, which seems to be a long shot since the losses are only mounting, the report stated.
